City of La Porte Annual Budget 1991-1992

Browse Search

I I I I I I I I I I I I I I I I I I I SUMMARY OF RESOURCES The primary resources for the City of La Porte are taxation and charges for services. The underlying base for estimation of resource collection is historical trend analysis combined with a conservative attitude. Resources Derived Throueh Taxation The resources derived from the taxation of property located in the City is by far the largest resource of the City. The process the City uses is known as Ad Valorem Taxation, which means according to value. The Tax Rates for the last six years are shown below. The rate is presented as cents per hundred dollar valuation. The appraised values are obtained from the Harris County Appraisal District, which according to state law, appraises all property located in Harris County. The City expects to collect 7.2 million dollars through the ad valorem tax process. PROPERTY TAX RATES LAST SIX FISCAL YEARS Fiscal Year Rate 86-87 .7128 87-88 .6600 88-89 .6800 89-90 .7100 90-91 .7100 91-92 .7100 0.2 . ..__m. . ...._m. . _ ........ . ......... . .. ........ .. .......... . o ...7 87-88 88-81 811-10 "-8, 1,..111 CJ OPERATIONS ~ OEBT IEIIVIC& Another major revenue source that is derived through the taxation process is the collection of In Lieu of Tax payments from companies located in the City's two industrial zones. As mentioned earlier, these companies have twenty-five percent of the value of their property included in the ad valorem tax roll of the City and pay an additional twenty-five percent as In Lieu of Taxes. The City expects to collect three million dollars from this revenue source. Sales Taxes are generated when goods are sold in the City. The State of Texas is the collecting agency for these taxes and submits to the City the portion the City is due. The current Sales Tax Rate in our jurisdiction is 7.25% which is comprised of 6.25% for the State and 1% for the City. The City estimates the amount it expects to receive from Sales Taxes based on historical trends. The City maintains a conservative position when estimating revenues so as to not over extend or commit its resources. The chart on the next page displays a positive increase in Sales Taxes for the last five years and is attributed to the recovery of the area from the economic downturn of the mid 80's and to increased retail outlets located in the City. 1-17